MassMutual Long-Term Care Insurance: What Existing Policyholders Need to Know in 2026

Massachusetts Mutual Life Insurance Company — MassMutual — suspended new individual traditional long-term care insurance sales nationwide effective January 28, 2021. Traditional LTC continues to be written under the SignatureCare name in New York and California only; CareChoice hybrid whole-life products with LTC riders remain available nationwide through MassMutual financial professionals. If you hold an in-force MassMutual traditional LTC policy, your coverage continues and is now administered by LifeCare Assurance Company, a third-party administrator based in Woodland Hills, California. This guide explains what that structure means for your coverage, what MassMutual's financial position means for claims security, and what your options are when a rate increase notice arrives.

MassMutual's LTC insurance business: what they sold and what remains active

MassMutual operated in the long-term care insurance market through two distinct product lines with different current statuses.

Traditional standalone LTC insurance: SignatureCare

MassMutual sold traditional standalone long-term care insurance under the SignatureCare product family through its career financial professionals. SignatureCare policies are tax-qualified contracts under IRC §7702B — meaning benefits trigger when a licensed health care practitioner certifies that the insured cannot perform at least 2 of 6 activities of daily living (ADLs: bathing, dressing, eating, toileting, transferring, continence) or has severe cognitive impairment expected to last at least 90 days.

SignatureCare policies were sold with the full range of traditional LTC benefit design options: daily or monthly benefit amounts, benefit periods from 2 years to unlimited/lifetime, elimination periods typically 0, 30, 60, 90, or 180 days, and inflation protection options including compound and simple percentage riders. MassMutual also offered SignatureCare policies qualifying for state LTC Partnership programs, providing dollar-for-dollar Medicaid asset disregard after the policy's benefits are exhausted — see our Partnership LTC insurance guide for how that mechanic works.

Effective January 28, 2021, MassMutual suspended new SignatureCare policy applications in all states except New York and California, where the product continues to be actively sold.² If you hold an in-force SignatureCare policy issued before that date in any other state, your policy is guaranteed renewable — MassMutual cannot cancel it as long as you pay the premium. The policy terms and benefit design cannot be changed without your consent.

CareChoice hybrid whole-life products: active nationwide

MassMutual continues to actively offer long-term care coverage nationwide through two hybrid whole-life products with qualified LTC riders:

• CareChoice One — a single-premium whole life insurance policy with an attached LTC rider. The single premium funds both a death benefit and a pool of LTC benefits accessible when the ADL or cognitive impairment triggers are met. The entire premium is funded at purchase; there are no ongoing premium obligations and therefore no rate increase exposure after the initial purchase.
• CareChoice Select — a whole life policy with level premiums payable for 10 years and an attached LTC rider. After the 10-year premium payment period, coverage is fully paid up with no further premium obligations.

Both CareChoice products are IRC §7702B-qualified long-term care insurance contracts. Benefits paid under the LTC riders are generally received income tax-free, and a portion of the premium attributable to the LTC rider may be deductible under the HIPAA age-based eligible premium limits ($500–$6,200 per year depending on age as of 2026).⁴ See our LTC insurance tax deductions guide for the full 2026 deductibility schedule.

CareChoice is available for §1035 exchanges from qualified life insurance or annuity contracts with embedded gains — a tax-free transfer mechanism that converts old cash-value life or annuity value into hybrid LTC coverage without triggering income tax on the accumulated gain. See our hybrid LTC insurance comparison for how CareChoice compares to Lincoln MoneyGuard, OneAmerica Asset-Care, and Nationwide CareMatters on benefit delivery structure, premium guarantees, and couples strategies.

Why MassMutual suspended traditional LTC sales in 2021

MassMutual's January 2021 suspension of traditional LTC sales followed the same structural logic driving every carrier exit from this market, but with one notable difference: MassMutual pivoted to hybrid products rather than exiting LTC entirely.

The structural problems with standalone traditional LTC insurance are well-documented:

1. Pricing assumptions proved fundamentally wrong. Policies sold in the 1990s and 2000s were priced assuming higher lapse rates (policyholders voluntarily letting coverage lapse), shorter care durations, and lower claim frequencies than actually occurred. Healthier people who no longer felt they needed coverage disproportionately lapsed; sicker policyholders anticipating future claims retained coverage. The remaining pool's risk profile concentrated over time in ways that original pricing did not anticipate.
2. Interest rate environment collapsed beneath reserve assumptions. Traditional LTC reserves are held primarily in investment-grade fixed income. The sustained low-rate environment following the 2008 financial crisis meant that investment income generated on held reserves lagged the assumed yields built into policy pricing — compressing the investment spread that traditional LTC pricing counted on to supplement premium income.
3. Claim severity and duration exceeded actuarial projections. Dementia-driven long-duration claims, rising cost of care per day, and lifetime benefit period policies combined to create policy exposures that original pricing substantially underestimated. A policy sold in 1998 with a 5% compound inflation rider and unlimited benefit period can have a benefit pool worth several hundred thousand dollars in 2026 — a liability that premiums collected over 28 years were insufficient to fund at the interest rates that actually prevailed.

What distinguishes MassMutual from carriers like Genworth, MetLife, and Prudential that exited traditional LTC entirely is that MassMutual remained committed to offering LTC protection in a different form — through the CareChoice hybrid structure, where the pricing model is fundamentally different. A hybrid whole-life policy with an LTC rider is priced as a life insurance product: the premium funds a death benefit, and the LTC benefit is an acceleration of that death benefit pool. The investment risk is borne by the carrier on the allocated reserve, not on an open-ended LTC exposure tied to uncertain claim frequencies and interest rate assumptions over 20+ year horizons. This structure allows MassMutual to continue serving LTC planning needs while eliminating the pricing vulnerabilities that made standalone traditional LTC commercially unsustainable.

MassMutual LTC rate increase history

Despite MassMutual's A++ financial strength rating and mutual company structure, in-force traditional LTC policyholders have faced premium increases on closed-block policies — for the same actuarial reasons driving increases at every other closed-block carrier.

Key documented data points:

• 77% average increase filing: An AM Best news article documented that MassMutual filed for approval of a 77% average rate increase on certain LTC policy cohorts in its in-force block — a request that required state regulatory approval before implementation.³ The approval timeline and the specific policy series affected vary by state, as LTC rate increase requests are reviewed individually by each state's insurance department.
• Consecutive annual increases: Some policyholders have reported consecutive annual increases in the 37.5% range across multiple policy years, representing compounded cumulative premium growth well above what was disclosed at policy issuance.⁵
• State regulatory review: MassMutual LTC rate increases require state insurance department approval — typically with actuarial support documentation — before implementation. Massachusetts, California, New York, and Maryland all maintain public records of approved and pending LTC rate filings. Policyholders who believe a rate increase was applied inconsistently or without proper notification have the right to contact their state insurance commissioner.

LifeCare Assurance: administering your in-force policy

If you hold an in-force MassMutual traditional LTC policy issued before January 2021 in any state outside New York and California, your policy is administered by LifeCare Assurance Company, a third-party administrator based in Woodland Hills, California. LifeCare Assurance handles policy service, premium billing, benefit change requests, and claims administration on behalf of MassMutual for the closed-block traditional LTC portfolio.²

This third-party administration structure is common in the LTC market. Administering in-force LTC policies requires specialized claims expertise, care coordination capabilities, and regulatory compliance infrastructure that carriers prefer to consolidate in dedicated administrators rather than maintain in-house after exiting new sales. LifeCare Assurance operates similarly to how other TPA firms administer closed blocks for other carriers that have exited the market.

For policy administration matters — premium payment, benefit review, rate increase correspondence, or claims initiation — contact LifeCare Assurance directly. The MassMutual policyowner information page at massmutual.com/long-term-care-insurance-policyowner-information provides current contact information and links to the policy service portal.⁶ If you are approaching care eligibility or have already begun receiving care, contact LifeCare Assurance's claims department early — the benefit trigger certification process and elimination period countdown begin from the date of initial claim submission.

For policyholders in New York and California holding active SignatureCare policies (including newly issued policies), direct contact information may differ — your policy documents will specify the applicable service phone number and address.

MassMutual's financial strength: what A++ means for LTC claims

Massachusetts Mutual Life Insurance Company holds an AM Best Financial Strength Rating of A++ (Superior), affirmed in 2026 with a stable outlook.¹ A++ is AM Best's highest rating tier — the same level held by New York Life and Thrivent in the LTC market. It is meaningfully stronger than:

• John Hancock: A+ (Superior) — one notch lower
• Prudential Insurance Company: A+ (Superior)
• Transamerica: A (Excellent)
• Genworth Life and Annuity: B++ (Good) — three full notches lower than MassMutual

Two structural features reinforce MassMutual's financial position beyond the rating itself:

Mutual company structure. MassMutual is organized as a mutual life insurance company — meaning it has no public shareholders, no stock price, and no quarterly earnings pressure from capital markets. The company's sole obligation runs to its policyholders. This structure removes the shareholder-value dynamic that has accelerated some publicly traded carriers' LTC exits and in some cases shaped rate increase tactics. MassMutual's in-force LTC block is administered against a backdrop of institutional continuity that has existed since the company's founding in 1851.

Business diversification well beyond LTC. MassMutual operates a large, diversified financial services business spanning whole life insurance, term life, disability income insurance, annuities, group benefits, and asset management. The LTC closed block is a meaningful but contained portion of the overall enterprise. The A++ rating reflects the overall enterprise's financial strength — a strength that underpins the subsidiary's claims-paying capacity.

The A++ rating reflects AM Best's assessment of MassMutual's balance sheet strength, operating performance, and ability to pay long-horizon claims. An important distinction: the rating confirms claims-paying capacity, not the end of premium increases on the traditional closed block. Financial strength and actuarial adequacy of a closed block are separate questions. MassMutual can simultaneously hold an A++ rating and file for rate increases on its in-force traditional LTC portfolio — these are not contradictory.

Is MassMutual selling new LTC policies in 2026?

It depends on the product and state:

• Traditional standalone LTC insurance (SignatureCare): New applications are accepted in New York and California only. In all other states, new traditional LTC applications have not been accepted since January 28, 2021.
• CareChoice hybrid whole-life products: Available nationwide through MassMutual financial professionals. CareChoice One (single premium) and CareChoice Select (10-year premium paying) are active products.
• §1035 exchanges into CareChoice: Available nationwide. If you hold a qualified life insurance or annuity contract with embedded gains, a §1035 exchange into a CareChoice product is a viable option to evaluate — and avoids triggering income tax on accumulated gains.

If you need new traditional LTC coverage and are not in New York or California, you will need to evaluate carriers currently writing new policies: Mutual of Omaha, Thrivent, NGL, and New York Life in the traditional market, and Lincoln Financial, Nationwide, OneAmerica, and MassMutual (CareChoice) in the hybrid market. See our LTC insurance companies guide for the full active carrier landscape and our hybrid LTC insurance guide for an analysis of which product type fits different planning situations.

Your options as a current MassMutual traditional LTC policyholder

When you receive a rate increase notice from LifeCare Assurance or MassMutual — or are reassessing a recent one — the decision framework is consistent with any closed-block traditional LTC policy. The right choice depends on your policy's current benefit value, how much compound inflation has accumulated, your age and health, and your broader financial position. Our LTC premium increase guide covers the full framework; the considerations below apply specifically to MassMutual SignatureCare policies.

Option 1: Pay the increased premium and maintain benefits

For policyholders who purchased MassMutual SignatureCare coverage in the 1990s or early 2000s with compound inflation protection, paying the increased premium is frequently the mathematically rational choice — even after a significant rate hike.

A SignatureCare policy issued in 1999 with a $150/day benefit and 5% compound inflation has grown to approximately $430–$500/day by 2026 — 27 years of 5% compound growth multiplies the original benefit by roughly 3.6×. Coverage of that level is simply not available as a new standalone traditional LTC policy: no carrier currently writes new policies with those benefit levels combined with long or unlimited benefit periods and 5% compound inflation. The present value of the accumulated inflation protection is often far greater than the cost of maintaining the policy at the new premium rate.

The question is not just "is the new premium affordable?" but "what is the cost of replacing this coverage on the open market — if replacement is even medically possible?" For policyholders in their late 60s or 70s, the AALTCI-documented decline rates for new LTC applicants (approaching 50% at age 70+) mean the existing MassMutual policy may be irreplaceable regardless of the new premium level.⁷

Option 2: Reduce benefits to hold premiums manageable

MassMutual is required to offer benefit reduction alternatives when issuing rate increase notices. Common options include reducing the daily or monthly benefit amount, shortening the benefit period from lifetime or a long period to a shorter fixed period, modifying or eliminating the inflation protection rider, or extending the elimination period to 90 or 180 days to reduce the carrier's expected exposure.

Protect compound inflation before shortening the benefit period. If you purchased a SignatureCare policy with 5% compound inflation in the late 1990s or early 2000s, that inflation engine has been compounding for 25+ years. The accumulated inflation-adjusted benefit value is the most economically significant feature of these older policies. If you must reduce benefits, reducing the benefit period is typically the better trade than eliminating or converting the inflation rider — the inflation rider is what makes the policy's future benefit value meaningful in a $10,000–$15,000/month memory care environment. See our inflation protection guide for the compounding math over long horizons.

Option 3: Execute a §1035 exchange into CareChoice or another hybrid

If you hold a non-qualified annuity or whole life insurance policy with substantial embedded gains, a §1035 exchange transfers those funds tax-free into a hybrid life+LTC product — including MassMutual's own CareChoice products, Lincoln Financial MoneyGuard, OneAmerica Asset-Care, or Nationwide CareMatters. The hybrid replaces your rate-hike-exposed traditional policy with contractually guaranteed premiums and a death benefit that passes to heirs if care is never needed.

For policyholders evaluating CareChoice specifically: the shift from a traditional rate-exposed SignatureCare policy to a CareChoice product is a meaningful structural change. CareChoice premiums are guaranteed — there is no mechanism for MassMutual to increase them after issue, because CareChoice is a whole life product priced on life insurance economics, not open-ended LTC claim assumptions. The trade-off is that CareChoice requires a lump sum (CareChoice One) or 10-year premium payment (CareChoice Select), and the benefit pool mechanics differ from traditional reimbursement policies. See our hybrid LTC comparison for a full side-by-side evaluation. A §1035 exchange requires existing qualifying cash value and cannot be funded from ongoing income — this option is only available if you hold a qualifying contract.

Option 4: Cancel — but check contingent non-forfeiture first

Letting the MassMutual policy lapse may be appropriate if you have genuine self-fund capacity ($1.5M–$2M+ liquid for singles; $2M–$3M+ for most couples depending on geography and care cost assumptions) or if cumulative benefit reductions from prior modification requests have reduced the policy's remaining protection to a level that no longer justifies the premium. See our self-fund strategy guide for how to model the crossover between self-funding and policy maintenance.

Critical step before canceling: Verify whether the cumulative rate increases on your MassMutual policy have triggered your contingent non-forfeiture (CNF) right. Under NAIC model regulation §24, a qualifying premium increase — measured as a percentage above the original premium at issue — entitles you to convert your policy to a reduced paid-up (RPU) status, stopping all future premiums while retaining a benefit pool equal to the greater of total premiums paid or 30× your current daily benefit. The election window is typically 120 days from the qualifying trigger notice. Canceling before completing a CNF analysis may permanently forfeit benefit value you have paid for over 20+ years.⁸

Contact LifeCare Assurance (via massmutual.com/long-term-care-insurance-policyowner-information) to request a non-forfeiture options statement before making any cancellation decision.

Comparing MassMutual to other LTC carriers

MassMutual's position in the carrier landscape is distinctive — it's the only major carrier that suspended traditional LTC sales while maintaining active hybrid products and continuing to write traditional policies in two major states:

MassMutual's most significant distinction in this comparison: A++ financial strength from a mutual company, active hybrid products that eliminate rate-hike exposure going forward, and a narrower traditional exit than Genworth, Prudential, or MetLife — MassMutual still writes traditional LTC in NY and CA and is not fully out of the traditional market.

For carrier-specific guidance on other closed-block carriers: Genworth · John Hancock · Prudential · MetLife · Transamerica · Unum. For the full active carrier landscape, see our LTC insurance companies guide.

What a fee-only advisor does with a MassMutual LTC policy

The core question for any MassMutual SignatureCare policyholder facing a rate increase is: given what you've paid, what you'd pay at the new rate, and the current benefit value (which may have compounded substantially over 20+ years), does this policy still fit your financial plan? That analysis is specific to your policy — the benefit value of a 1999 SignatureCare policy with 5% compound inflation and a long benefit period is radically different from a 2010 policy with no inflation protection.

A fee-only advisor's MassMutual policy analysis typically includes:

• Calculating your current inflation-adjusted benefit pool — what your daily or monthly benefit has grown to after years of compound inflation, and what that coverage is worth relative to current and projected care costs in your geographic area
• Projecting total lifetime premiums at the new rate against expected benefit payout across claim probability scenarios, using gender-specific actuarial data (51% of women and 39% of men who purchase LTC insurance eventually file a claim, per AALTCI 2025)⁷
• Modeling the self-fund crossover: what liquid reserve would produce equivalent LTC protection without the MassMutual policy?
• Evaluating CareChoice or other hybrid alternatives at your current age and health — and whether a §1035 exchange from existing life or annuity assets could fund the transition tax-efficiently
• Assessing contingent non-forfeiture rights under your specific policy before any cancellation decision

A commissioned agent earns first-year commission on a new product sale and earns nothing from recommending you keep the MassMutual policy. That structure creates a systematic incentive toward replacement regardless of whether replacement is the right financial decision. A fee-only advisor charges for the analysis and earns the same fee whether the recommendation is to keep the MassMutual policy, reduce benefits, execute a CareChoice exchange, or self-fund. When a policy has been compounding benefits for 25 years, that analysis is worth having done properly.